Offshore Outsourcing- Bane or Boon?

A feature article by Michael Henderson, Apr 14, 2008         

What can outsourcing do for businesses? This question has been pondered over by many enterprises. Results are more convincing than blatant claims, so companies like Microsoft, Intel, Cisco, IBM, Google, Amazon, GE, Reuters, and others made a difference to their performances, outsourcing became a buzz.

Outsourcing services to foreign shores have proven benefits, as well as detriments. It becomes imperative on your part maintain a strict scrutiny, check the credentials of the outsource service provider before you enter into an agreement with anyone of them.

And the most popular destination sought after by corporate giants like Hewlett Packard, Dell and Oracle, among others, is India! Companies are just flocking to hire the services and some of them have even set up offices in the heart of India’s Silicone Valley, Bangalore.
What makes India an obvious choice among the other Asian countries on the same line?

Technical Mastery
India drives on foresight and a keen business acumen in the IT domain. The government saw the potential of in the future of IT education and invested in it. Now, it is starting to pay off. India is a treasure house of programmers and IT professionals coupled with academic excellence. And foreign firms can get the programming functions done at a fraction of the cost paid to programmers in the US, UK and Japan.

Ongoing Technical Research

ADVERTISEMENT:

Good governance and conducive business incentives
The government in India has included conducive tax incentives for foreign companies seeking outsource services. Moreover the government is stable and runs the affairs of the country and its people cautiously. Thus, most global companies find India their best outsource stop.

Time Factor
India’s time zone gels in well with US time zone. That ensures a round the clock work schedule is followed, and thus clients find their business on top of things all the time. The knowledge that your business is closely monitored round the clock is everything you could hope for, from an outsource service provider.

.
Outsourcing benefits
Outsourcing to India ensures quality and productivity .Solutions are delivered faster, at reduced time. Routine functions, that do not contribute directly to the attainment of company’s revenues can be delegated to outsourcing, thus managerial focus is geared towards core competencies that will have impact on the company’s growth and survival.